In This Article
A line of text in a paragraph.In a move that could revolutionize the engagement of millions with crypto wallets, ConsenSys has made the acquisition of Web3Auth, the leading provider of passwordless and multi-party computation (MPC) key management technologies.
With the June 2 announcement, the anguish and risk of seed phrases for MetaMask's 40 million monthly users will come to an end — a new benchmark for wallet security and user experience potentially being set for the industry.
Why Web3Auth? The End of Seed Phrase Anxiety
For years, MetaMask has been the Ethereum and EVM chains' top self-custody wallet, but its 12- or 24-word seed phrase reliance has left users agitated.
Web3Auth integration will "significantly enhance MetaMask user experience by solving one of the biggest risks in self-custody today: seed phrase management," ConsenSys CEO Joseph Lubin says.
Internal data reveals that wallet users never store their seed phrase for 35% of the time, which leaves billions in assets at risk of losing access.
Web3Auth technology leverages MPC key-sharding, where a private key is split into multiple blocks of encrypted material that are then reconstituted with standard Web2 logins (Google or Apple) and device-based auth.
The implication for this is that users will now be able to recover their wallets with social logins or multi-factor auth — no more scribbling down phrases and risking loss forever.
What Does This Do for MetaMask's 40 Million Users?
The integration will be phased in, starting with voluntary passwordless sign-up and social login recovery for new and existing users. MetaMask will also introduce multi-factor authentication and device-based recovery, facilitating adoption by non-crypto natives and much harder for hackers or phishers to drain wallets.
For developers, the acquisition gives them embedded wallet SDKs and key management solutions to enable dApps to offer frictionless, secure onboarding without sacrificing decentralization. ConsenSys believes this will help onboard "the next billion users" to Web3.
The Competitive Response: Rabby and OKX Wallet
MetaMask's move is already sending shockwaves in the world of wallets. Rabby Wallet, famous for multi-chain and simplicity, just teased its own password-free login and smart account features.
OKX Wallet, however, has far-reaching blockchain compatibility and tight exchange integration but is still seed phrase recovery-dependent for most users.
Community Buzz and Developer Hopes
The news has sparked excitement across social media. Many see passwordless, MPC-backed wallets as the key to mainstream adoption. “Seed phrases are the biggest barrier for crypto newbies.
This is the upgrade we’ve been waiting for,” wrote one MetaMask user on X. Others are eager to see if the new system can truly balance convenience with security, especially as phishing and wallet-draining attacks remain rampant.
The bottom line
With ConsenSys and Web3Auth coming into alignment, the next chapter of MetaMask can one day make crypto wallets just as easy—and secure—as logging in to your favorite app.
